Division in 22 Families

Post-Bhutto Stratergy to appear
small

It is said that process of wear
and tear through division and family split in the big industrial conglomerates
usually takes three generations, but in Pakistan it was advanced by several
decades because of Bhutto's nationalization. It was, therefore, bit of
a truth when Nasim Saigol bemoaned that, but for Bhutto's nationalization
Pakistan would have had its share of Birlas and Tatas and joined the ranks
of Asian Tigers. The 22 families of Pakistan were like the bird whose wings
were clipped before take off on the first flight. But it is a great tribute
to some of them like falcons braving high winds, their scions have risen
again to great heights.

Almost all the big business
groups of the 1970s had started in 1947 as family joint ventures and almost
each of them that survived seperation of East Pakistan and nationalization
stands divided today, with the exception of Crescent group of Industries.

Saigol group was owned jointly
by three of four sons of founder Amin Saigol, namely Yusuf, Bashir and
Sayed Saigol while the fourth son Gul Saigol had stayed back in India in
1947. Saigol dynasty split in the 1976 among 16 male off-springs and is
currently operating in four distinct groups namely Saigol group headed
by Nasim Saigol, Mohib group of Rafiq Saigol, Kohinoor group of Tariq Sayed
Saigol and a small Iqbal Saigol group.

Present-day Adamjee dynasty
was founded by Sir Adamjee Haji Dawood and his three sons, Abdul Wahid
Adamjee, Abdul Hamid Adamjee and G M Adamjee. In the wake of nationalization,
the assets of group were divided among six inheritors which have been further
sub-divided over the years.

Dawood group was split among
Ahmad Dawood and his brothers Suleman Dawood and Sidiq Dawood operating
in Dawood, Descen, and BBR group respectively. A relatively unknown Ghani
group comprising the in-laws of Ahmad Dawood was also carved out of the
main groups.

Bawany's assets were divided
among seven sons of Ahmad Bawany and over the years its assets have come
to be sub-divided. A splinter from Bawany is known as the Al-noor group.

Gul Ahmad was a joint venture
of seven brothers and cousins who are now split in Gul Ahmad group headed
by Haji Ali Mohammad Pakolawala and Al-Karam owning at least ten textile
mills.

Crescent was a joint venture
of four sons of Shams Din, namely Mohammad Amin, Mohammad Bashir, Mohammad
Shafi, Fazal Karim and their two cousins. It is only group that has remained
united through thick and thin during last 50 years.

The Colony group founded by
Mohammad Ismaeel has been divided in three groups headed by Farooq A Shaikh,
Naseer A Shaikh and Mughis A Shaikh.

K M Bashir, born n 1910 at
Bellary India, had founded the business of Hyesons, after the name of his
father Abdul Hayee Khan and was engaged in the import of steel and manufacture
of iron and steel pipes for gas and motor supplies, electric lamps and
several mining concessions. According to the list of defaulters released
by Benazir Bhutto government,Hyesons was fifth biggest defaulter
of RS one billion and has become almost extinct in Pakistan.

Valibhai of Bombay was the
founder of the dynasty that came to be known as Valika. He had four sons,
Fakhruddin Valibhai, Najjamuddin Valibhai, Saifuddin Valibhai and Nooruddin
Valibhai. The group is operating two archaic textile mills in Karachi and
its main fmaily members are known to have moved abroad.

Habib group was founded by
Seth Ismaeel Habib who had died in1931 and the business passed to hands
of his four sons, Mohammad Ali Habib, Ahmad Habib, Dawood Habib and Ghulam
Ali Habib who shifted to Karachi when Pakistan into existence. After nationalization
the members of Habib family also split and are now operating in to two
distinct groups headed by Rafiq Habib and children of late Rashid D Habib
but Habib Bank A G Zurich is a joint venture of all the Habibians.

Nishat was a joint venture
of Mian Mohammad Yahya and his three brothers but after the divisions of
assets in 1970 it is owned by Mian Mansha while the three other brothers
and their off-springs seem to have disappered in thin air.

The House of Ittefaq of
Prime Minister Nawaz Sharif was a joint venture of seven brothers. But
119 offspring of founding fathers and their spouses are battling in a court
in Lahore for division of the assets. The members of House of Ittefaq are
now operating in three distinct groups namely Ittefaq group, Sharif group
and Habib Waqas group of Industries.

The Fecto best illusterates
how the psyche of big business, particularly of Memons and Karachi-based
business communities was affected by the nationalization and seperation
of East Pakistan.

The Fecto group was founded
by Ghulam Mohammad M Adamjee of Jetpur, Kathiawar, India, with the humble
beginning as a foot wear merchant at Bombay. In 1951 he established Mohammadi
Oil Mills at Chittgong and Eastern Textile, East Pakistan's first art silk
mills. He alos signed an agreement with Japanese company for Pakistan's
first project to asseble radio and transistors. By 1970 he was managing
director Fecto Limited, Fecto-Yamagen Electronics, Dacca Radio Electronics,
Fecto Agencies Limited, Fecto Industries Limited adn Chaudri Overseas Fishing
Limited. Fecto was distributor of radio, television, electronic appliances,
agricultural implements, fertilizers, pig iron, automobiles and their parts.

Fecto was working on a project
to manufacture tractors and a nylon factory in 1971 when it shifted its
head office from East Pakistan to Karachi and acquired Adamjee Sugar Mills.
However, in West Pakistan, the group dropped the name Adamjee and Ghulam
Mohammad M Adamjee is now known as Ghulam Mohammad M Fecto.

Nationalization stunted Pakistan's
economic growth in many ways but it was destined, by fault rather than
by design, to contribute to the meteoric rise of Chanioti business community
in Pakistan, particularly in Punjab. Farooq A Shaikh of Colony talked in
detail how nationalization opened new opportunities for Punjab-based groups
particularly Chiniotis to venture into areas, previously forbidden for
them because of the monoply of the Memons. (See
rise of Chiniotis)